Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination?
A) zone pricing
B) basing-point pricing
C) uniform-delivered pricing
D) dynamic pricing
E) FOB-origin pricing

Question

Quizplus · Accepted Answer

FOB-origin pricing, also known as free on board pricing, means the buyer takes responsibility for the transportation costs from the factory to the final destination. This is a common pricing strategy for large, heavy or expensive goods where the cost of shipping is a significant portion of the total product cost. It allows the buyer to have control over the shipping arrangements and cost, which can be beneficial for budgeting and logistics planning.

Under Which Type of Geographic Pricing Strategy Does Each Customer